Blog: Leonie BarrieMixed bag in August

Leonie Barrie | 10 September 2007

Delayed back-to-school spending sprees hit US retailers hard in July, so it was a relief to many that preparations for the new academic year gave a boost to August same-store sales growth and overshadowed other worries like the struggling housing market, tightening credit and rising gas prices.

According to TNS Retail Forward’s August ShopperScape survey, August same-store sales growth was 3.0% ahead of the prior month, and shoppers expected to spend an average $571 on their back-to-school purchases. That said, August sales were down 3.9% on the same month last year when the back-to-school estimate was $596. Furthermore, 67% of planned back-to-school spending is now thought to be complete.

So while education offered some respite to apparel chains and department stores last month, it’s likely this was just a blip in a longer-term trend.

“Shoppers were not spooked like stock market investors by fears of a credit crunch. But that only means that the fallout for households will hit home more gradually in the coming months,” said Frank Badillo, senior economist and director of the Retail Forward KnowledgeBase. And there’s more bad news for September, when retailers will be up against some difficult September year-ago comparisons.

US retailers' August 2007 sales roundup


Asia facing up to increased competition

Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...


Cambodia raises garment worker wages

The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...


Sportswear initiatives start to take shape

The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...


Hanjin Shipping collapse triggers fear of West Coast port repeat

The recent bankruptcy of South Korea's Hanjin Shipping, the world's seventh-largest container shipper, at the end of August, has left billions of dollars worth of merchandise in limbo, leaving the fal...

just-style homepage

Forgot your password?